Australian fashion retailer Glue Store has permanently closed all its stores and online operations, following an $8.4 million loss. The company announced the decision in a statement, thanking customers for their loyalty over the years.
The closure comes amid a wave of retail collapses in Australia, including Barbeques Galore, Lincraft, Mosaic Brands, Ally Fashion, and Fletcher Jones. Glue Store was acquired by Accent Group in 2021 for $13 million, but Accent announced in February that the business would be wound down.
Economic analysts point to rising interest rates, inflation, and reduced consumer spending as key factors. Westpac senior economist Matthew Hassan said the economy is likely to slow further, with three interest rate hikes this year yet to fully impact the market.
Queensland University of Technology professor Gary Mortimer noted that discretionary retailers are highly exposed to household cost pressures and competition from overseas online retailers. He added that June is a common time for companies to assess annual results and make difficult decisions about closures.
